Print
House File 638 - IntroducedA Bill ForAn Act 1relating to landlord remedies and procedures relating to
2failure to timely pay rent, abandonment, and forcible entry
3and detainer.
4BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 555B.3, Code 2019, is amended to read as
2follows:
3555B.3 Action for abandonment — jurisdiction.
4A real property owner not requesting notification by the
5sheriff as provided in section 555B.2 may bring an action
6alleging abandonment in the court within the county where the
7real property is located provided that there is no lien on
8the mobile home or personal property other than a tax lien
9pursuant to chapter 435. The action shall be tried as an
10equitable action. Unless commenced as a small claim, the
11petition shall be presented to a district judge. Upon receipt
12of the petition, either the court or the clerk of the district
13court shall set a date for a hearing not later than fourteen
14days from the date of the receipt of the petition, except when
15there is a lien on the mobile home or personal property, other
16than a tax lien, the court or the clerk of the district court
17shall set a date for a hearing no sooner than twenty-five days
18from the date of the receipt of the petition so as to allow for
19service on the lienholder.
20 Sec. 2. Section 555B.4, Code 2019, is amended by adding the
21following new subsection:
22 NEW SUBSECTION. 4. If a lien, other than a tax lien, exists
23on the mobile home or personal property at the time an action
24for abandonment is initiated, personal service pursuant to rule
25of civil procedure 1.305 shall be made upon the lienholder
26no less than twenty days before the hearing. The notice to
27the lienholder shall describe the mobile home and shall state
28the docket, case number, date, time at which the hearing is
29scheduled, and the lienholder’s right to assert a claim to
30the mobile home at the hearing. The notice shall also state
31that failure to assert a claim to the mobile home within the
32judicial proceedings is deemed a waiver of all right, title,
33claim, and interest in the mobile home and is deemed consent to
34the sale or disposal of the mobile home. If personal service
35upon the lienholder cannot be completed in time to give the
-1-1lienholder the minimum notice required by this section, the
2court may set a new hearing date.
3 Sec. 3. Section 555B.8, subsections 2 and 3, Code 2019, are
4amended to read as follows:
52. If Except as otherwise ordered by the court, if the
6mobile home owner or other claimant asserts a claim to the
7property, the judgment shall be satisfied before the mobile
8home owner or other claimant may take possession of the mobile
9home or personal property.
103. If no claim is asserted to the mobile home or personal
11property or if the judgment is not satisfied at the time of
12entry, an order shall be entered allowing the real property
13owner to sell or otherwise dispose of the mobile home and
14personal property pursuant to section 555B.9. If Except as
15otherwise ordered by the court, if a claimant satisfies the
16judgment at the time of entry, the court shall enter an order
17permitting and directing the claimant to remove the mobile home
18or personal property from its location within a reasonable time
19to be fixed by the court. The court shall also determine the
20amount of further rent or storage charges to be paid by the
21claimant to the real property owner at the time of removal.
22 Sec. 4. Section 555B.9, subsections 1, 2, 3, and 4, Code
232019, are amended to read as follows:
241. Pursuant to an order for disposal under section 555B.8,
25subsection 3, the real property owner shall dispose of the
26mobile home and personal property by public or private sale in
27a commercially reasonable manner. If the personal property,
28lienholder, owner or other claimant has asserted a claim to
29the mobile home or personal property within the judicial
30proceedings, that person shall be notified of the sale by
31restricted certified mail not less than five days before the
32sale. The notice is deemed given upon the mailing. The real
33property owner may buy at any public sale, and if the mobile
34home or personal property is of a type customarily sold in
35a recognized market or is the subject of widely distributed
-2-1standard price quotations, the real property owner may buy at a
2private sale.
32. A sale pursuant to subsection 1 transfers to the
4purchaser for value, all of the mobile home owner’s rights
5in the mobile home and personal property, and discharges the
6real property owner’s interest in the mobile home and personal
7property, and any tax lien, and any other lien. The purchaser
8takes free of all rights and interests even though the real
9property owner fails to comply with the requirements of this
10chapter or of any judicial proceedings, if the purchaser acts
11in good faith.
123. The proceeds of the sale of mobile home and personal
13property shall be distributed as follows:
14a. First, to satisfy the real property owner’s judgment
15obtained under section 555B.8.
16b. Second, to satisfy any tax lien for which a claim was
17asserted pursuant to section 555B.4, subsection 3.
18c. Third, to satisfy any other lien for which a claim was
19asserted pursuant to section 555B.4, subsection 4.
20c. d. Any surplus remaining after the proceeds are
21distributed shall be held by the real property owner for six
22months. If the mobile home owner fails to claim the surplus
23in that time, the surplus may be retained by the real property
24owner. If a deficiency remains after distribution of the
25proceeds, the mobile home owner is liable for the amount of the
26deficiency.
274. Notwithstanding subsections 1 through 3, the real
28property owner may propose to retain the mobile home and
29personal property in satisfaction of the judgment obtained
30pursuant to section 555B.8. Written notice of the proposal
31shall be sent to the mobile home owner, lienholder, or other
32claimant, if that person has asserted a claim to the mobile
33home or personal property in the judicial proceedings. If
34the real property owner receives objection in writing from
35the mobile home owner, lienholder, or other claimant within
-3-1twenty-one days after the notice was sent, the real property
2owner shall dispose of the mobile home and personal property
3pursuant to subsection 1. If no written objection is received
4by the real property owner within twenty-one days after the
5notice was sent, the mobile home and personal property may be
6retained. Retention of the mobile home and personal property
7discharges the judgment of the real property owner, and any tax
8lien, and any other lien.
9 Sec. 5. Section 562A.9, subsection 4, Code 2019, is amended
10to read as follows:
114. For rental agreements in which the rent does not exceed
12seven hundred dollars per month, a rental agreement shall not
13provide for a late fee that exceeds twelve dollars per day or a
14total amount of sixty dollars per month. For rental agreements
15in which the rent is greater than seven hundred dollars per
16month but less than one thousand four hundred dollars per
17month, a rental agreement shall not provide for a late fee that
18exceeds twenty dollars per day or a total amount of one hundred
19dollars per month. For rental agreements in which the rent is
20at least one thousand four hundred dollars per month, a rental
21agreement shall not provide for a late fee that exceeds two
22percent of the rent per day or a total amount of ten percent of
23the rent per month.
24 Sec. 6. Section 562B.10, subsections 4 and 7, Code 2019, are
25amended to read as follows:
264. For rental agreements in which the rent does not exceed
27seven hundred dollars per month, a rental agreement shall not
28provide for a late fee that exceeds twelve dollars per day or a
29total amount of sixty dollars per month. For rental agreements
30in which the rent is greater than seven hundred dollars per
31month but less than one thousand four hundred dollars per
32month, a rental agreement shall not provide for a late fee that
33exceeds twenty dollars per day or a total amount of one hundred
34dollars per month. For rental agreements in which the rent is
35at least one thousand four hundred dollars per month, a rental
-4-1agreement shall not provide for a late fee that exceeds two
2percent of the rent per day or a total amount of ten percent of
3the rent per month.
47. a. If a tenant who was sole owner of a mobile home dies
5during the term of a rental agreement then that person’s heirs
6or legal representative or the landlord shall have the right
7to cancel the tenant’s lease by giving sixty days’ written
8notice to the person’s heirs or legal representative or to
9the landlord, whichever is appropriate, and the heirs or the
10legal representative shall have the same rights, privileges and
11liabilities of the original tenant.
12b. (1) If a tenant who was sole owner of a mobile home dies
13during the term of a rental agreement resulting in the mobile
14home being abandoned as provided in section 562B.27, subsection
151, and the landlord cannot, despite due diligence, locate such
16tenant’s heirs or legal representatives, then the landlord may
17bring an action for abandonment as provided in section 555B.3,
18naming as defendants the estate of the tenant and any and all
19unknown heirs of the tenant and, upon the landlord’s filing
20of an affidavit that personal service cannot be had on any
21heir, legal representative, or estate of the tenant, the court
22shall permit original notice of such action to be served by
23publication pursuant to subparagraph (2) of this paragraph.
24(2) Publication of the original notice shall be made
25once each week for three consecutive weeks in a newspaper of
26general circulation published in the county where the petition
27is filed, as provided in rules of civil procedure 1.313 and
281.314. Service is complete after the third consecutive weekly
29publication.
30(3) In the event any tax lien or other lien exists on
31the mobile home, the landlord may proceed with an action for
32abandonment as provided in section 555B.3, except that:
33(a) Notice shall be provided to the county treasurer as
34provided in section 555B.4, subsection 3, if a tax lien exists.
35(b) Personal service pursuant to rule of civil procedure
-5-11.305 shall be made upon any lienholder no less than twenty
2days before the hearing.
3(4) Any notice to a lienholder shall state that failure
4to assert a claim to the mobile home is deemed a waiver of
5all right, title, claim, and interest in the mobile home and
6is deemed consent to the sale or disposal of the mobile home.
7If personal service upon the lienholder cannot be completed
8in time to give the lienholder the minimum notice required by
9subparagraph (3), the court may set a new hearing date.
10 Sec. 7. Section 648.5, subsection 1, Code 2019, is amended
11to read as follows:
121. An action for forcible entry and detainer shall be
13brought in a county where all or part of the premises is
14located. Such an action shall be tried as an equitable action.
15Upon receipt of the petition, the court shall set a date,
16time, and place for hearing. The court shall set the date
17of hearing no later than eight days from the filing date,
18except that the court shall set a later hearing date no later
19than fifteen days from the date of filing if the plaintiff
20requests or consents to the later date of hearing. The
21requirement regarding the setting of the initial hearing is not
22a jurisdictional requirement and does not affect the court’s
23subject matter jurisdiction to hear the action for forcible
24entry and detainer.
25EXPLANATION
26The inclusion of this explanation does not constitute agreement with
27the explanation’s substance by the members of the general assembly.
28This bill relates to landlord remedies and procedures
29relating to failure to timely pay rent, abandonment, and
30forcible entry and detainer.
31Current law caps late fees on rental agreements in which
32rent is greater than $700 per month at $20 per day and $100
33per month. Current law also allows an aggrieved party to
34recover actual damages in certain situations when a prohibited
35provision is willingly or knowingly used in a rental agreement.
-6- 1The bill allows a rental agreement to provide for late fees
2not to exceed 2 percent of the rent per day and 10 percent of
3the rent per month when rent exceeds $1,400 per month.
4The bill makes changes to the process for an action for
5abandonment of mobile homes. The bill extends the time by
6which a district court shall set a hearing after receiving a
7petition from not later than 14 days to no sooner than 25 days
8when there is a lien other than a tax lien on the mobile home
9or personal property. The bill provides notice, service, and
10publication procedures in an action for abandonment if the
11sole owner of a mobile home dies during the term of a rental
12agreement.
13The bill also makes a procedural change relating to
14jurisdiction in actions for forcible entry and detainer.
-7-js/rn
2failure to timely pay rent, abandonment, and forcible entry
3and detainer.
4BE IT ENACTED BY THE GENERAL ASSEMBLY OF THE STATE OF IOWA:
1 Section 1. Section 555B.3, Code 2019, is amended to read as
2follows:
3555B.3 Action for abandonment — jurisdiction.
4A real property owner not requesting notification by the
5sheriff as provided in section 555B.2 may bring an action
6alleging abandonment in the court within the county where the
7real property is located provided that there is no lien on
8the mobile home or personal property other than a tax lien
9pursuant to chapter 435. The action shall be tried as an
10equitable action. Unless commenced as a small claim, the
11petition shall be presented to a district judge. Upon receipt
12of the petition, either the court or the clerk of the district
13court shall set a date for a hearing not later than fourteen
14days from the date of the receipt of the petition, except when
15there is a lien on the mobile home or personal property, other
16than a tax lien, the court or the clerk of the district court
17shall set a date for a hearing no sooner than twenty-five days
18from the date of the receipt of the petition so as to allow for
19service on the lienholder.
20 Sec. 2. Section 555B.4, Code 2019, is amended by adding the
21following new subsection:
22 NEW SUBSECTION. 4. If a lien, other than a tax lien, exists
23on the mobile home or personal property at the time an action
24for abandonment is initiated, personal service pursuant to rule
25of civil procedure 1.305 shall be made upon the lienholder
26no less than twenty days before the hearing. The notice to
27the lienholder shall describe the mobile home and shall state
28the docket, case number, date, time at which the hearing is
29scheduled, and the lienholder’s right to assert a claim to
30the mobile home at the hearing. The notice shall also state
31that failure to assert a claim to the mobile home within the
32judicial proceedings is deemed a waiver of all right, title,
33claim, and interest in the mobile home and is deemed consent to
34the sale or disposal of the mobile home. If personal service
35upon the lienholder cannot be completed in time to give the
-1-1lienholder the minimum notice required by this section, the
2court may set a new hearing date.
3 Sec. 3. Section 555B.8, subsections 2 and 3, Code 2019, are
4amended to read as follows:
52. If Except as otherwise ordered by the court, if the
6mobile home owner or other claimant asserts a claim to the
7property, the judgment shall be satisfied before the mobile
8home owner or other claimant may take possession of the mobile
9home or personal property.
103. If no claim is asserted to the mobile home or personal
11property or if the judgment is not satisfied at the time of
12entry, an order shall be entered allowing the real property
13owner to sell or otherwise dispose of the mobile home and
14personal property pursuant to section 555B.9. If Except as
15otherwise ordered by the court, if a claimant satisfies the
16judgment at the time of entry, the court shall enter an order
17permitting and directing the claimant to remove the mobile home
18or personal property from its location within a reasonable time
19to be fixed by the court. The court shall also determine the
20amount of further rent or storage charges to be paid by the
21claimant to the real property owner at the time of removal.
22 Sec. 4. Section 555B.9, subsections 1, 2, 3, and 4, Code
232019, are amended to read as follows:
241. Pursuant to an order for disposal under section 555B.8,
25subsection 3, the real property owner shall dispose of the
26mobile home and personal property by public or private sale in
27a commercially reasonable manner. If the personal property,
28lienholder, owner or other claimant has asserted a claim to
29the mobile home or personal property within the judicial
30proceedings, that person shall be notified of the sale by
31restricted certified mail not less than five days before the
32sale. The notice is deemed given upon the mailing. The real
33property owner may buy at any public sale, and if the mobile
34home or personal property is of a type customarily sold in
35a recognized market or is the subject of widely distributed
-2-1standard price quotations, the real property owner may buy at a
2private sale.
32. A sale pursuant to subsection 1 transfers to the
4purchaser for value, all of the mobile home owner’s rights
5in the mobile home and personal property, and discharges the
6real property owner’s interest in the mobile home and personal
7property, and any tax lien, and any other lien. The purchaser
8takes free of all rights and interests even though the real
9property owner fails to comply with the requirements of this
10chapter or of any judicial proceedings, if the purchaser acts
11in good faith.
123. The proceeds of the sale of mobile home and personal
13property shall be distributed as follows:
14a. First, to satisfy the real property owner’s judgment
15obtained under section 555B.8.
16b. Second, to satisfy any tax lien for which a claim was
17asserted pursuant to section 555B.4, subsection 3.
18c. Third, to satisfy any other lien for which a claim was
19asserted pursuant to section 555B.4, subsection 4.
20c. d. Any surplus remaining after the proceeds are
21distributed shall be held by the real property owner for six
22months. If the mobile home owner fails to claim the surplus
23in that time, the surplus may be retained by the real property
24owner. If a deficiency remains after distribution of the
25proceeds, the mobile home owner is liable for the amount of the
26deficiency.
274. Notwithstanding subsections 1 through 3, the real
28property owner may propose to retain the mobile home and
29personal property in satisfaction of the judgment obtained
30pursuant to section 555B.8. Written notice of the proposal
31shall be sent to the mobile home owner, lienholder, or other
32claimant, if that person has asserted a claim to the mobile
33home or personal property in the judicial proceedings. If
34the real property owner receives objection in writing from
35the mobile home owner, lienholder, or other claimant within
-3-1twenty-one days after the notice was sent, the real property
2owner shall dispose of the mobile home and personal property
3pursuant to subsection 1. If no written objection is received
4by the real property owner within twenty-one days after the
5notice was sent, the mobile home and personal property may be
6retained. Retention of the mobile home and personal property
7discharges the judgment of the real property owner, and any tax
8lien, and any other lien.
9 Sec. 5. Section 562A.9, subsection 4, Code 2019, is amended
10to read as follows:
114. For rental agreements in which the rent does not exceed
12seven hundred dollars per month, a rental agreement shall not
13provide for a late fee that exceeds twelve dollars per day or a
14total amount of sixty dollars per month. For rental agreements
15in which the rent is greater than seven hundred dollars per
16month but less than one thousand four hundred dollars per
17month, a rental agreement shall not provide for a late fee that
18exceeds twenty dollars per day or a total amount of one hundred
19dollars per month. For rental agreements in which the rent is
20at least one thousand four hundred dollars per month, a rental
21agreement shall not provide for a late fee that exceeds two
22percent of the rent per day or a total amount of ten percent of
23the rent per month.
24 Sec. 6. Section 562B.10, subsections 4 and 7, Code 2019, are
25amended to read as follows:
264. For rental agreements in which the rent does not exceed
27seven hundred dollars per month, a rental agreement shall not
28provide for a late fee that exceeds twelve dollars per day or a
29total amount of sixty dollars per month. For rental agreements
30in which the rent is greater than seven hundred dollars per
31month but less than one thousand four hundred dollars per
32month, a rental agreement shall not provide for a late fee that
33exceeds twenty dollars per day or a total amount of one hundred
34dollars per month. For rental agreements in which the rent is
35at least one thousand four hundred dollars per month, a rental
-4-1agreement shall not provide for a late fee that exceeds two
2percent of the rent per day or a total amount of ten percent of
3the rent per month.
47. a. If a tenant who was sole owner of a mobile home dies
5during the term of a rental agreement then that person’s heirs
6or legal representative or the landlord shall have the right
7to cancel the tenant’s lease by giving sixty days’ written
8notice to the person’s heirs or legal representative or to
9the landlord, whichever is appropriate, and the heirs or the
10legal representative shall have the same rights, privileges and
11liabilities of the original tenant.
12b. (1) If a tenant who was sole owner of a mobile home dies
13during the term of a rental agreement resulting in the mobile
14home being abandoned as provided in section 562B.27, subsection
151, and the landlord cannot, despite due diligence, locate such
16tenant’s heirs or legal representatives, then the landlord may
17bring an action for abandonment as provided in section 555B.3,
18naming as defendants the estate of the tenant and any and all
19unknown heirs of the tenant and, upon the landlord’s filing
20of an affidavit that personal service cannot be had on any
21heir, legal representative, or estate of the tenant, the court
22shall permit original notice of such action to be served by
23publication pursuant to subparagraph (2) of this paragraph.
24(2) Publication of the original notice shall be made
25once each week for three consecutive weeks in a newspaper of
26general circulation published in the county where the petition
27is filed, as provided in rules of civil procedure 1.313 and
281.314. Service is complete after the third consecutive weekly
29publication.
30(3) In the event any tax lien or other lien exists on
31the mobile home, the landlord may proceed with an action for
32abandonment as provided in section 555B.3, except that:
33(a) Notice shall be provided to the county treasurer as
34provided in section 555B.4, subsection 3, if a tax lien exists.
35(b) Personal service pursuant to rule of civil procedure
-5-11.305 shall be made upon any lienholder no less than twenty
2days before the hearing.
3(4) Any notice to a lienholder shall state that failure
4to assert a claim to the mobile home is deemed a waiver of
5all right, title, claim, and interest in the mobile home and
6is deemed consent to the sale or disposal of the mobile home.
7If personal service upon the lienholder cannot be completed
8in time to give the lienholder the minimum notice required by
9subparagraph (3), the court may set a new hearing date.
10 Sec. 7. Section 648.5, subsection 1, Code 2019, is amended
11to read as follows:
121. An action for forcible entry and detainer shall be
13brought in a county where all or part of the premises is
14located. Such an action shall be tried as an equitable action.
15Upon receipt of the petition, the court shall set a date,
16time, and place for hearing. The court shall set the date
17of hearing no later than eight days from the filing date,
18except that the court shall set a later hearing date no later
19than fifteen days from the date of filing if the plaintiff
20requests or consents to the later date of hearing. The
21requirement regarding the setting of the initial hearing is not
22a jurisdictional requirement and does not affect the court’s
23subject matter jurisdiction to hear the action for forcible
24entry and detainer.
25EXPLANATION
26The inclusion of this explanation does not constitute agreement with
27the explanation’s substance by the members of the general assembly.
28This bill relates to landlord remedies and procedures
29relating to failure to timely pay rent, abandonment, and
30forcible entry and detainer.
31Current law caps late fees on rental agreements in which
32rent is greater than $700 per month at $20 per day and $100
33per month. Current law also allows an aggrieved party to
34recover actual damages in certain situations when a prohibited
35provision is willingly or knowingly used in a rental agreement.
-6- 1The bill allows a rental agreement to provide for late fees
2not to exceed 2 percent of the rent per day and 10 percent of
3the rent per month when rent exceeds $1,400 per month.
4The bill makes changes to the process for an action for
5abandonment of mobile homes. The bill extends the time by
6which a district court shall set a hearing after receiving a
7petition from not later than 14 days to no sooner than 25 days
8when there is a lien other than a tax lien on the mobile home
9or personal property. The bill provides notice, service, and
10publication procedures in an action for abandonment if the
11sole owner of a mobile home dies during the term of a rental
12agreement.
13The bill also makes a procedural change relating to
14jurisdiction in actions for forcible entry and detainer.
-7-js/rn